(f) cosidering any other matter that may affect the functioning of this Agreement or that is entrusted to the Commission by the Parties.
3. The Commission may:
(a) create ad hoc or standing committees, or expert groups as necessary for implementing this Agreement, and assign functions to them;
(b) for purposes of accomplishing the objectives of this Agreement, modify:
(i) the schedule of goods of a Party contained in Annex 3.04 (Tariff Reduction Schedule) with the purposes of incorporating one or more of the goods excluded in the Tariff Reduction Schedule,
(ii) the period established in Annex 3.04 (Tariff Reduction Schedule) with the purpose of accelerating tariff reduction,
(iii) the rules of origin set out in Annex 4.03 (Specific Rules of Origin) ,
(iv) the Uniform Regulations,
(v) Annex I, II, III and IV of Chapter 10 (Investment),
(vi) Annex I, II and V of Chapter 11 (Cross-border Trade in Services), and
(vii) AnnexVIofChapter12(FinancialServices);
(c) seek the advice of non-governmental persons or groups;
(d) make and approve regulations required for the implementation of this Agreement; and
(e) take any other action in the exercise of its functions as the Parties may agree upon.
4. The modifications referred to in paragraph 3(b) shall be implemented by the Parties according to their respective national laws .
5. The Commission may establish its rules and procedures, and all its decisions shall be made by consensus.
6. The Commission shall convene at least once a year in regular session, and shall convene by request of a Party in special session. The location of the meeting shall rotate between the Parties.
Article 18.02. Administrative Sub-commission of the Agreement
1. The Parties hereby establish the Administrative Sub-commission of the Agreement, which is composed of the officials as set out in Annex 18.02 or persons designated by them.
2. The Sub-commission shall have the following functions:
(a) developing and reviewing the technical documents necessary for taking decisions under the Agreement;
(b) following up the decisions adopted by the Commission;
(c) without prejudice to Article 18.01(2), may also supervise the work of all committees, sub-committees and expert groups established under this Agreement and pursuant to Article 18.05(3); and
(d) reviewing any other matter that may affect the functioning of this Agreement and that is assigned by the Commission.
3. The Commission may establish rules and procedures applicable to the proper operation of theSub-commission.
Article 18.03. Secretariat
1. The Commission shall establish and oversee a Secretariat which is composed of their national sections.
2. Each Party:
(a) shall designate a permanent office or official responsible for acting on behalf of the national section of the Secretariat of such Party and shall notify the Commission of the address, phone number and any other relevant information where its national section is located;
(b) shall be responsible for:
(i) the operation and costs of its section; and
(ii) the remuneration and payment of the expenses of arbitrators, their assistants and the assigned experts under this Agreement, as set out in Annex 18.03; and
(c) shall designate a Secretary to serve in its national section, who shall be responsible for its administration.
3. The Secretariat shall have the following functions:
(a) providing assistance to the Commission and to the Sub-commission;
(b) providing administrative support to the arbitral groups created according to Chapter 19 (Dispute Settlement), in accordance with the proceedings established pursuant to Article 19.13(Model Rules of Procedure);
(c) by instructions of the Commission, supporting the work of the committees, sub-committees and expert groups established under this Agreement;
(d) conducting communications and notifications pursuant to Article 17.08 (Communications and Notifications); and
(e) other matters as assigned by the Commission.
Section B. Committees, Sub-committees and Expert Groups
Article 18.04. General Provisions
1. The provisions stated in this section shall, in a supplementary manner, apply to all committees, sub-committees and expert groups created under this Agreement.
2. Each committee, sub-committee and expert group shall be composed of representatives of each Party and all their decisions shall be made by consensus.
Article 18.05. Committees
1. The Commission may create committees other than those established according to Annex 18.04.
2. All committees shall have the following functions:
(a) monitoring by its jurisdiction the implementation of the Chapters of this Agreement;
(b) reviewing matters submitted by a Party claiming that a measure in force of the other Party by its jurisdiction has affected the effective implementation of the undertakings included in the Chapters of this Agreement;
(c) requesting the competent authority to prepare technical reports and taking necessary actions to settle the issue;
(d) assessing and recommending proposals to the Commission to modify, amend or add to the provisions of this Agreement within its competency;
(e) proposing to the Commission the revision of measures in force of a Party which it considers may be inconsistent with the obligations of this Agreement or may cause nullification or impairment in the sense of Annex 19.03 (Nullification and Impairment); and
(f) carrying out other tasks that the Commission may assign to it pursuant to the provisions of this Agreement and other instruments derived from it.
3. The Commission and the Sub-commission shall supervise the work of all committees established or created under this Agreement.
4. Each committee may establish its own rules and procedures and shall meet upon the request of a Party or the Commission.
Article 18.06. Sub-Committees
1. With the aim of delegating its functions, a committee may create standing sub- committees for matters specifically delegated to them, and supervise their work. Each sub-committee shall have the same functions as a committee on matters for which it was delegated.
2. Each sub-committee shall report to the committee on the implementation of its mandate.
3. The rules and procedures of a sub-committee may be established by the committee that created it. Sub-committees shall meet at the request of a Party or their corresponding committee.
Article 18.07. Expert Groups
1. Notwithstanding Article 18.01(3)(a), a committee or sub-committee may also create ad hoc expert groups, with the purpose of conducting necessary technical research that it deems appropriate for accomplishing its functions, and shall supervise their work. The expert groups shall strictly accomplish what they have been entrusted to do, and within the terms and timeframes established. Each expert group shall report to the committee or sub-committee that created it.
2. The rules and procedures of an expert group may be established by the committee or sub-committee that created it.
Chapter 19. DISPUTE SETTLEMENT
Section A. Dispute Settlement
Article 19.01. Definitions
For purposes of this Chapter, the following definitions shall be understood as:
complaining Party: the Party that makes a claim;
consulting Party: any Party that holds consultations under Article 19.06; defendant Party: the Party against which a complaint is made; and
disputing Party: the complaining Party or the defendant Party.
Article 19.02. General Provisions
1. The Parties shall at all times endeavor to agree on the interpretation and application of this Agreement, and shall make every attempt through cooperation and consultations to arrive at a mutually satisfactory resolution of any matter that might affect its operation.
2. Any settlement of matters raised under this Chapter shall be consistent with this Agreement and shall not nullify nor impair the benefits for the Parties deriving from it, nor shall impede the attainment of any objective of this Agreement.
3. The mutually satisfactory solutions reached by the Parties of any matters raised in accordance with the provisions of this Chapter, shall be notified to the Commission within a period of fifteen (15) days after the agreement on the settlement of the dispute in question is reached.
Article 19.03. Scope of Application
Except as otherwise provided for in this Agreement, the procedures of this Chapter shall apply:
(a) to prevent or settle disputes between the Parties regarding the application or interpretation of this Agreement; or
(b) when a Party considers that an actual measure of the other Party is or would be inconsistent with the obligations of this Agreement or might cause nullification or impairment as set out in Annex 19.03.
Article 19.04. Choice of Fora
1. The disputes arising in connection with the provisions of this Agreement and the WTO Agreement or agreements negotiated in accordance with the WTO Agreement may be settled in one of those fora, as the complaining Party chooses.
2. Where a Party has requested the establishment of an arbitral group under Article 19.09 or has requested the establishment of a panel under Article 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes of the WTO Agreement, the forum chosen shall be used to the exclusion of the other.
Article 19.05. Urgent Cases
1. In cases of urgency including such cases, as contemplated in paragraphs 2 and 3, the Parties and the arbitral groups shall make every effort to accelerate to the greatest extent the proceedings.
2. In cases of perishable agricultural goods, fish and fish products that are perishable:
(a) a consulting Party may request in writing that the Commission meet, when an issue is not resolved in accordance with Article 19.06 within fifteen (15) days following the submission of the request for consultations; and
(b) the Party that has requested the intervention of the Commission, may request in writing the formation of an arbitral group when the issue has not been resolved within fifteen (15) days after the meeting of the Commission, or if the Commission has not met, within fifteen (15) days after submitting the request for such a meeting .
3. In cases of urgency other than those referred to in paragraph 2, the Parties shall try to the extent possible to reduce by half the timeframe as provided for in Articles 19.07 and 19.09 for requesting a meeting of the Commission and the establishment of an arbitral group respectively.
Article 19.06. Consultations
1. A Party may request in writing to enter into consultations with the other Party regarding any actual measure or any other matter that the Party considers may affect the operation of this Agreement in terms of Article 19.03.
2. The complaining Party requesting consultations shall submit their request to the responsible agency of the other Party.
3. The Parties shall make every attempt to arrive at a mutually satisfactory resolution on any matter through consultations under this Article or other consultative provisions of this Agreement. To this end, the consulting Parties shall:
(a) provide information to allow the undertaking of the examining of how the actual measures or any other matter might affect the operation of this Agreement; and
(b) treat the confidential information exchanged in the course of consultations on the same basis as the Party providing the information.
The Initiation of the Proceedings
Article 19.07. Commission Intervention
1. Any consulting Party may request in writing that the Commission meet provided that:
(a) an issue that has not been resolved in accordance with Article 19.06 within thirty (30) days following the submission of the request for consultations, unless that the Parties agree another deadline by mutual consent; or
(b) the Party that has been delivered the request for consultations has not answered within the deadline of ten (10) days following the submission of the request.
2. The request referred to in paragraph 1 shall indicate the measure or any other issue that is the object of a claim and the applicable provisions of this Agreement.
3. Unless otherwise decided, the Commission shall meet within ten (10) days following the submission of the request, and with the purpose of obtaining a mutually satisfactory dispute resolution, may:
(a) call on technical advisors or create expert groups as it considers necessary;
(b) request the good offices, conciliation or mediation of a person or group of persons or other alternative ways of dispute resolution; or
(c) formulate recommendations.
4. Unless otherwise decided, the Commission shall consolidate 2 or more proceedings under this Article relating to the same measure. The Commission may accumulate 2 or more proceedings under this Article in relation to other issues, when considered convenient to examine them jointly.
Article 19.08. Good Offices, Conciliation and Mediation
1. Good offices, conciliation and mediation are procedures that are initiated on a voluntary basis if the Parties so agree.
2. Proceedings involving good office, conciliation and mediation, and in particular the positions of the Parties to the dispute during these proceedings, shall be confidential and without prejudice to the rights of either Party in any further proceedings under these procedures .
3. Good offices, conciliation or mediation may be requested at any time by either Party to a dispute. They may begin and be terminated at any time.
Proceeding of Arbitral Group
Article 19.09. Request for the Establishment of an Arbitral Group
1. The Party that has requested the intervention of the Commission, according to Article 19.07, may request in writing to the other Party for the establishment of an arbitral group, when the dispute in question cannot be resolved within:
(a) thirty (30) days after the meeting of the Commission, or if this has not been held, thirty (30) days after the submission of the request for a meeting of the Commission;
(b) thirty (30) days after the Commission has met and accumulated the most recent issue in accordance with Article 19.07(4); or
(c) any other period that the Parties may agree upon.
2. The request for the establishment of an arbitral group shall be made in writing, and shall state whether the consultations have been held, and in case that the Commission has met, state the actions taken; and the Party shall give the reason for the request, including identification of the measures at issue and an indication of the legal basis for the complaint.
3. Within fifteen (15) days of the submission of the request to the responsible agency of the other Party, the Commission shall establish the arbitral group in accordance with Article 19.12.
4. Unless the Parties agree otherwise, the arbitral group shall be established and shall exercise its functions in accordance with the provisions of this Chapter.
Article 19.10. List of Arbitrators
1. Upon entry into force of this Agreement, the Parties shall establish and maintain a list of up to twenty individuals with the required qualification to serve as arbitrators. Said list shall be composed of the "list of Arbitrators of the Parties" and the "List of Arbitrators of Non-Party Countries". Each Party may designate five (5) national arbitrators to form the "List of Arbitrators of the Parties", and five (5) arbitrators of Non-Party countries to form the "List of Arbitrators of Non-Party Countries".
2. The rosters of arbitrators might be modified every 3 years. Notwithstanding, the Commission might revise, by request of a Party, the roster of arbitrators before the expiration of this period.
3. The members of the rosters of arbitrators shall meet the qualifications set forth in Article 19.11.
Article 19.11. Qualifications of the Arbitrators
1. All the arbitrators shall meet the following qualifications:
(a) have speciali zed knowledge or experience in law, international trade, other matters related to this Agreement, or in the settlement of disputes arising from international trade agreements;
(b) be elected strictly according to their objectivity, integrity, reliability and good judgement;
(c) be independent, not associated with, and not accepting instructions from any Party; and
(d) observe the Code of Conduct that the Commission establishes.
2. Persons that have participated in a dispute under Article 19.07 (3) cannot serve as arbitrators for the same dispute.
Article 19.12. Composition of the Arbitral Group
1. In the establishment of the arbitral group, the Parties shall observe the following procedures:
(a) the arbitral group shall be composed of three members;
(b) the Parties shall endeavor to agree on the designation of the chair of the arbitral group within fifteen (15) days after the submission of the request for the establishment of the arbitral group;
(c) if the Parties do not reach an agreement within the above-mentioned timeframe, on the designation of the chair of the arbitral group, he or she shall be chosen by drawing lot from the “List of Arbitrators of non-Party Countries”;
(d) within fifteen (15) days after the designation of the chair, each Party shall select an arbitrator from the “List of Arbitrators of the Parties”, and the arbitrator selected could be one of the disputing Party’s nationality; and
(e) if a disputing Party does not select an arbitrator, the arbitrator shall be chosen by drawing lot from the “List of Arbitrators of the Parties” and shall be of that Party’s nationality.
2. Where a disputing Party considers that an arbitrator has violated the Code of Conduct, the Parties shall hold consultations and decide whether to remove that arbitrator and select a new one pursuant to the provisions of this Article.
Article 19.13. Model Rules of Procedure
1. Upon the entry into force of this Agreement, the Commission shall establish the Model Rules of Procedure in accordance with the following principles:
(a) the procedures shall ensure the right of a hearing before the arbitral group and the opportunity to present allegations and rebuttals in writing; and
(b) the hearings before the arbitral group, the deliberations and the preliminary report, as well as all the writings and communications presented in it shall be confidential.
2. The Commission may modify the Model Rules of Procedure.
3. Unless the Parties agree otherwise, the proceeding before the arbitral group shall follow the Model Rules of Procedure.
4. Unless the Parties agree otherwise, the mandate of the arbitral group shall be:
“To examine in light of the provisions of this Agreement the dispute submitted for its consideration under the terms set forth in the request for the meeting of the Commission, and make reports as provided for in Articles 19.15 and 19.16”.
5. If the complaining Party claims that a matter was a cause of nullification or impairment of benefits in the sense of Annex 19.03, the mandate shall state it.
6. When a disputing Party requests that the arbitral group reaches conclusions about the extent of the adverse trade effects brought upon by the measure adopted by the other Party and considered by the disputing Party as inconsistent with the Agreement, or that the measure has caused nullification or impairment in the sense of Annex 19.03, the mandate shall state it.
Article 19.14. Information and Technical Advice
At the request of a disputing Party or ex officio, the arbitral group may seek information and technical advice from the persons or institutions that it deems appropriate under the Model Rules of Procedure.
Article 19.15. Preliminary Report
1. The arbitral group shall issue a preliminary report based on the arguments and submissions presented by the Parties and on any information received in accordance with Article 19.14, unless the Parties agree otherwise.
2. Unless the Parties agree otherwise, the arbitral group shall present to the Parties, within ninety (90) days of the nomination of the last arbitrator a preliminary report which includes :
(a) findings of fact, including any findings pursuant to a request under Article 19.13(6);
(b) a decision about the inconsistency or possible inconsistency of the measure in question with the obligations arising from this Agreement or about the measure being a cause of nullification or impairment as set out in Annex 19.03 or any other decision requested in the mandate;